PLAN103 Lecture Notes - Lecture 8: Marginal Utility, Equilibrium Point, Demand Curve
Document Summary
Externalities (congestion, pollution etc, consequences not accounted for in the price) Signal being sent to market is different. Rationing mechanism(how we price things influences how people use goods/services) Learn about the theory behind the arguments put forth by blais. Need to understand the economic theory o what is being advocated when we can discuss limits and implementation. Learn to analyze policy currently being used in practice. Build a model to explain graphically two issues with pricing public goods( externalities; avg vs mc pricing) Needs to be a simplification of the real world. Using prices to shape urban form and transportation demand. Policy responses (land use regulation, urban design, not been sufficient) Mispricing (not pricing) as a cause of sprawl(theory behind this, solutions, where/how applied, challenges) Use kilometres of infrastructure as the example we will work through. Theres a demand curve( the lower the price the higher the demand(downward slope))
